However, Hickenlooper is also recommending a few tweaks to the proposal, giving the state a slightly larger ownership stake in what would be the newly privatized mutual assurance company and creating a new fund for injured workers.

“Most of the large policy holders I’ve talked to, almost without fail they’ve been pretty enthusiastic” about the privatization proposal, Hickenlooper told reporters today in a conference call from Davos, Switzerland, where he is attending the World Economic Forum.

The governor’s recommendations are being laid out in a draft report that will ultimately be presented to the Pinnacol Assurance Stakeholders Task Force, a group of leaders from the business, labor and non-profit communities scrutinizing the proposal.

“On balance, and after extensive review by the technical team and input from the Task Force, the governor believes that the benefits of the proposed restructuring more than outweigh the risks for both policyholders and the public,” the draft report says. “In addition, because the restructuring is subject to approval by the legislature and Pinnacol’s policyholders, the governor is comfortable recommending that the restructuring proceed into the legislative process.”

Despite those policyholders telling Hickenlooper they support the deal, a number of business groups have been skeptical about the proposed privatization, saying it presents new risks with unclear rewards. Many say they like the present system – under which Pinnacol is a quasi-governmental entity – just fine.

Support from lawmakers, who would have to approve the deal, has been lukewarm so far, with many saying they are remaining open to the idea but aren’t hearing a clamor for it.

In any case, Hickenlooper said, after the stakeholders task force holds its last meeting on Tuesday, the next step is to put the proposal before policyholders. If they don’t like it, the governor said, there’s no point in asking lawmakers to get behind it.

The original proposal from Pinnacol, backed by Hickenlooper, called for the state to receive an ownership stake worth 40 percent, with a $340 million face value, of what would be the new mutual assurance company. The company could later choose to publicly offer stock.

The initial deal would pay the state $13.6 million a year in dividends, money that could be used for college scholarships and economic development.

Some on the task force are questioning whether the state is getting a good enough deal in the transaction. And labor groups wanted to know how the deal might help injured workers.

Hickenlooper is now recommending the state’s share be increased to $350 million and that a $22 million injured workers fund be created. That fund would be paid over 20 years with annual payments of $1.1 million.